Is it correct to say that in overtrading too much short term finance is used while in overcapitalisation too much long term finance is used?
Ask the Tutor ACCA FM
Overtrading and overcapitalisation
5y ago#1Yes, although there is a lot more you would be expected to explain if you were to be asked a written part of a question about this (such as why they might occur and what problems might arise).
Sign in to reply to this topic.